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Europcar has been sold by Volkswagen to French investment group Eurazeo for more than euros 3 billion.

At the same time, the company has entered talks to acquire Belgium's largest car rental firm, Kiddy.

Eurazeo financed the Europcar acquisition with euros 775 million of equity with the remainder finaced by a euros 550 bond issue and a fleet financing programme of euros 2.9 billion.

Eurazeo executive board member and non-executive chairman of Europcar Xavier Marin said: "We have already started to actively work with Europcar's management on actions that wil allow the group to pursue and to accelerate its growth strategy."

Europcar managing director Salvatore Catania said: "We have the full support of our new shareholder and all the necessary financial resources to assert our position as a leader in Europe and to develop our worldwide network."

The company operates more than 2,900 rental agencies in 147 countries with 5,200 staff. Revenues last year of euros 1.28 billion were up 9% on 2004.

Report by Phil Davies

(TravelMole)